Globalization and India's Economic Integration by Baldev Raj Nayar

Author:Baldev Raj Nayar [Nayar, Baldev Raj]
Language: eng
Format: epub
Tags: Globalization, Political Economy, Political Science, World, Asian
ISBN: 9781626161085
Google: 6ngZBQAAQBAJ
Goodreads: 39655088
Publisher: Georgetown University Press
Published: 2014-11-12T00:00:00+00:00

SUMMARY AND CONCLUSION

Ideas, interests, and institutions all have been involved in tax reform in India during the period since the paradigm shift in economic policy. While long held as a vision by the national leadership, the common market as an achievable policy goal became a matter of active pursuit only with globalization and economic liberalization, which ended the regime of slow-growth socialist autarky. It is globalization that sharpened the necessity for the national leadership to achieve that goal because of the threat that it created for the national economy even as it facilitated the achievement of the goal, albeit only in slow installments, by opening up wider horizons for the leadership about tax and economic models elsewhere in the world. Globalization, it would appear, is not a single unified social force, but one that incorporates many trends and crosscurrents, some perhaps tending toward market segmentation but others aiding market integration instead.

At the same time, India’s actions in response to globalization, whether as threat or as stimulus to emulation, demonstrate that the state is no passive bystander to developments in the world economy. Where the state perceives threats, whether from the world economy or from the interstate system, to the stability of the national economy or to its own integrity, it intervenes directly and proactively to ward them off. This assessment, arising from the particular case of tax reform in India, is reinforced by the massive state interventions in countries across the world in response to the worldwide financial crisis in 2008. Even though the common market has not yet fully arrived in India, impressive strides toward it have been made through tax reform. These strides have occurred during globalization, have been compelled by it, and have been facilitated by it.

The common market, however, does not follow automatically from globalization. The movement toward the common market in India underlines the critical role of the state and political institutions in generating adequate responses to the challenges of globalization. However, like globalization, the state is not a single entity either. While there are some elements in the state, particularly at the center, that have eagerly pursued the building of a common market and have shown considerable statesmanship and political sagacity in building political consensus and innovatively creating new political institutions to foster the common market, there are other elements in the political structure that have resisted reform. It is in the interstices of the relationship between these two opposing sets of elements in the state that the movement toward the common market has taken place.

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